Oil Merchandiser Rolling Rack

A small footprint merchandiser...

CASE STUDY

This Stihl oil and liquid product merchandiser went into Stihl dealer locations, initially to test only 100 units. The displays were purchased by regional distributors to test out at dealer locations.

First, we wanted to analyze and consider the pure economics of this fixture purchase for the Stihl dealers, the prospective retailers. FHC based data off of the holding capacity of the fixture unit, using this sample inventory capacity:

2 cases of Gallon Bar and Chain

1 case of Quart Bar and Chain

2 cases of Moto Mix

1 case of 2 Gallon Mix Ultra

1 case of Gallon Mix Ultra

Considering the dealer’s cost to stock this inventory and the possible retail profit, one full turn over of the merchandise on this fixture would yield over $100 in gross profit. Considering the the cost per 1 display ( out of a larger order of 100 ) it would take 1.66 turn overs of inventory for the dealer to recoup the entire cost of the display.

Aside from the model explained above, which shows the viability of the investment, of we noted some real world feedback from dealers…

With 2 displays in the locations, it’s a great use of a small footprint. Biggest problem is keeping them filled. Now moving 6 times more product off the displays versus from their regular section within the store. 2012 oil sales YTD are over 70% ahead of 2011.

–  Jim, in Des Moines, Iowa

A perfect small footprint in the service department, selling 3 times more product from the fixture versus the regular section. Sales are up 280% YTD over 2011.

– Ryan, dealer in Winterset, Iowa

Although being a new dealer, with a display near the front register, product is being re-filled 2 times a week. In week 1 the display paid for itself. And conservatively, 20% of these sales are going to customers who don’t even own Stihl equipment.

– Mark, dealer in Spencer, Iowa

At the end of the day, possibility is real: real success and ROI was proven. These displays drove incremental sales and real gross profit dollars.